PRC: Xi'an Urban Road Network Project 1 Project Preparatory Technical Assistance Concept Paper

Transcription

1 Date: 24 November 2009 PRC: Xi'an Urban Road Network Project 1 Project Preparatory Technical Assistance Concept Paper 1. Country partnership strategy (CPS) / Regional cooperation strategy (RCS): Year included in CPS/RCS/COBP/ROBP/CPS or RCS Midterm Review Report: Country Program Mission mid-term, June 2009 Document reference number and date approved: n/a In case of change in the PPTA title, type, or amount, please state reason: 2. Coverage Country Subregional Interregional Xi'an City of Shaanxi Province sovereign 3. Assistance Focus non-sovereign a. Sector(s): Agriculture and natural resources Education Energy Finance Health and social protection Subsector(s): b. Targeting classification Targeted intervention TI-H TI-M TI-G General intervention (more indirectly addressing poverty reduction) Industry and trade Public sector management Transport and ICT Water supply and other municipal infrastructure and services Multisector c. Theme(s) Economic growth Gender equity Social development Private sector development Environmental sustainability Governance Regional cooperation and integration Capacity development Subthemes: Promoting economic efficiency and enabling business environment, and urban environment improvement d. Location impact Relative weight of spatial impact of the project Rural Urban National Regional 4. Partnership High Medium Low 5. Name of the Specialist (project team leader) in Name of the Alternate Specialist: Lewis-Workman, Steven P. charge of the project: Toshiyuki Yokota Local Number: 5676 Local Number: Address: tyokota@adb.org Address: slworkman@adb.org 6. Department/Division: EARD/EATC 1 In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this documents, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

2 7. Key Development Issues to be addressed: Background. Xi an is the provincial capital and the political, economic, and cultural center of Shaanxi Province, and is one of the most important growth poles in the western region of the PRC. Xi an municipality comprises the city (with nine districts) and four counties, and four special economic development zones with a total population of 8.7 million. Xi an s gross domestic product (GDP) was CNY220 billion in 2008, up by 15.6% from Average net income for urban residents was CNY15,207 in 2008, slightly less than the national average of CNY15,781. For rural residents net income per capita was CNY5,212 slightly less than the national average of CNY5,663. Xi an is a transport and logistics hub for the western PRC. The city is located at major highway and railway junctions. Around this transport hub, the city has developed into an important industrial and commercial center with many high-tech industries including electronics, machinery, pharmaceuticals, and service sector industries such as information technology, finance, and insurance. The Central Government of the PRC initiated the Western Development Strategy as a national goal in the 10th and 11th Five-Year Plans (FYP). In line with this strategy, Xi an was designated as one of the major metropolitan hubs to be developed as the growth poles for the Western Regions. By 2020, the Xi'an urban area will expand to be 800km 2 and the population is predicted to be 10 million. Xi'an city will be a world class metropolitan area. Xi'an, the starting point of the Silk Road, is one of the most popular tourist destinations in China with the worldrenowned Qin Terracotta Army, Han and Tang Dynasty tombs and other cultural relics. In 2008, there were 32.3 million tourists to Xi an, with an increase of 3.6% compared to the previous year. One major challenge for the city is to balance preservation and enhancement of its cultural heritage with the demands for development. Xi an has experienced rapid growth in recent years. However, the rapid urbanization has also put great pressure on its infrastructure. Transport demand, in particular, has grown much faster than economic growth. The GDP growth rate has averaged 15% per year since Xi'an will soon have a mature and reasonably comprehensive and high capacity transport infrastructure. Xi an s major road network is nearing completion within the third ring road. Over the next several years about 20 bus priority corridors and three subway lines will also be completed. In the next phase, Xi'an should develop policies and measures to manage these systems efficiently and to integrate private vehicles, buses, and subways. Passengers need to be able to transfer efficiently between modes and access the new public transit systems easily. In addition, demand on the increasingly crowded road network needs to be shifted to higher capacity public transit modes to maximize the returns on Xi an s large investments in pubic transit infrastructure and prevent increasing vehicle ownership from overwhelming the road network. Non-motorized transport such as walking and cycling will be a key to coordinate urban transport modes in Xi'an. Traffic demand management (TDM) and the provision of traveler information can bridge the gap between modes and promote efficient multi-modal coordination to induce travelers into using the new priority bus services and subway system. The Project will provide support to integrate the urban transport modes by introducing TDM measures and intelligent transport systems (ITS). Measures that promote safe and efficient pedestrian and bicycle access and egress will help to ensure the success of major ongoing investments in road, bus and rail networks. The Proposed Project. The proposed Project is expected to include 5 components under ADB financing: Road Improvements. The Project will improve about 30km of urban roadway at six key locations and one elevated viaduct to complete missing links in the city s master planned road network. These missing links mainly connect to the third ring road which was partly financed by ADB. The Project also includes four flyover viaducts about 3km in length: two along the second ring road and two along the third ring road to remove traffic bottlenecks. These improvements will increase connectivity to the third ring road, provide new access roads to key urban development zones, and expand the capacity of the urban road network generally. Pedestrian Mobility and Safety. The Project will identify and upgrade over 100 pedestrian crossings at major intersections and key mid-block crossing locations citywide. The locations and specific physical upgrades will be determined in a detailed pedestrian mobility and safety study to be conducted as part of the Project.

3 Traffic Demand Management. The World Bank (WB) will implement a TDM study on parking management, congestion charges and traffic calming zones through the Global Environment Facility. The study will be completed next year. The results of the study need to be considered in designing the scope of this Project. Besides parking management and congestion charging, park & ride and ride & bike schemes are other popular TDM tools. Park & ride systems improve vehicle/bicycle access to the new subway stations by providing adjacent areas to leave a vehicle/bicycle before riding the subway. A ride & bike system would establish bicycle sharing at major stations to expand the number of destinations accessible to subway riders. The Project is expected to include park & ride and ride & bike schemes that will reduce traffic congestion and promote energy efficiency and reduce CO 2 emissions by increasing the share of traffic on public transport. An additional benefit of the schemes is that they increase the revenue of bus and subway operations by shifting travelers from vehicles to public transport, reducing the subsidies needed from government agencies. The Project will introduce park & ride and ride & bike schemes at several subway stations and bus terminals, and will improve subway station areas. Intelligent Transport System (ITS). Responding to the rapidly growing demand for road transport, the PRC Government wishes to increase the capacity and efficiency of road networks by utilizing newly available technology. ITS provides the ability to gather, organize, analyze, use, and share information about transportation systems. Traveler information service systems (TISS) provide real-time travel information to support traveler decisions by providing information about routes and traffic conditions before and during trips. Beijing, Chongqing, and Shanghai provide information to support public transit and intermodal transfers. TISS in Xi'an could support the integration and coordination of the three modes of urban transport by providing real-time information to travelers. Traffic monitoring and management systems (TMMS) monitor traffic flow and incidents using road side sensors, closed-circuit television (CCTV), probe cars, and probe mobile units like cell phones. The Xi'an Municipal Government has installed about 150 CCTVs, 20 variable message signs, and 300 auto police cameras. The Project will strengthen TMMS by expanding these systems and improving their capabilities. The system architecture for TISS, TMMS, parking information systems and traffic survey functions will be established. Based on the established system architecture and existing international/ national ITS standards, TISS, TMMS, parking information systems and traffic survey functions will be included in the scope of the Project. The XMG started implementing electronic payment for bus fares using an integrated circuit (IC) card system in Approximately 3.5 million IC Cards are currently in use. IC card users receive a 50% discount on fares, and students receive 70% off. The IC card system should be integrated with the new subway system, park & ride, and ride & bike schemes for further integration of the urban transport modes. Payments also need to be coordinated and additional discounts for transfers should be explored as further TDM measures. Environmental Protection. The Project will enhance the capacity of the government to collect, analyze, and disseminate emissions and air quality data to policy makers and the public by establishing a vehicle emissions information system, expand the emissions testing and monitoring efforts to buses, trucks and other large fleet vehicles, expand the transport pollution monitoring system, and enhance the ability of the XMG to enforce emissions standards through the procurement and utilization of mobile testing vehicles. The Project will also construct new CNG fueling stations in strategic locations to facilitate the efficient access of buses and taxis to CNG. During the PPTA, ADB intends to maintain the flexibility to change or improve the proposed project components as the results of ongoing studies (WB project/feasibility studies), policy dialogue, and other new information becomes available. 8. TA Description: The PPTA will produce an agreed design and implementation arrangements for an urban transport project suitable for ADB financing. The main PPTA activities will include: (i) project preparation activities for the Xi'an urban transport development project, and (ii) preparation for sector support activities. a. Link to Country Partnership Strategy/Regional Cooperation Strategy: The Project will support the Government s Central Region Development Strategy. It is consistent with the objective of ADB's PRC Country Partnership Strategy ( ) which supports inclusive growth and sustainable development. The project meets the objectives of the CPS's main strategic pillars of: (i) inclusive growth and balanced development, (ii) resource efficiency and environmental sustainability, and (iii) enabling environment for private sector development.

4 b. Impact The impact of the Project will be a more efficient and sustainable urban transport system in Xi'an municipality brought about by the development and improved coordination of urban transport and the improvement of transport management. c. Outcome The outcome of the PPTA will be an agreed design of a Project combining new investment in infrastructure capacity, and strengthening of the urban transport sector in Xi'an municipality. d. Outputs The outputs of the PPTA will be the TA consultants final reports which will include: (i) Preparation of investment component. This will include a review and strengthening of the technical, environmental, social safeguard, economic and financial aspects of the draft feasibility studies to meet ADB's requirements for: (a) technical and economic aspects including multi-modal transport policy, TDM, ITS and non-motorized transport, and the economic and financial feasibility studies for the project, (b) reviewing the Government's environmental assessment related documents and guiding the environmental assessment consultants hired by the Government to ensure the quality of their assessment and environmental management plan, (c) reviewing and refining the resettlement plan; (d) carrying out a detailed poverty and social analysis, including a baseline socioeconomic profile of the population living in the project area, and preparing a social development action plan to mitigate adverse impacts and enhance inclusive benefits, (e) legal, institutional and policy issues relevant to urban transport operations, and (f) pedestrian safety and mobility. The national consultants will have expertise in: (a) urban transport and information technology projects, (b) urban road designing and road safety, (c) environmental impact analysis of urban transport projects, (d) social impact analysis and preparation of resettlement plans, (e) financial and procurement management assessments, and (f) survey design and quantitative analysis (ii) Preparation for sector support. Prior to PPTA implementation, ADB has prepared a sector assessment and identified potential sector support activities, tailored to the specific needs of Xi'an's transport sector, that can be further assessed and developed during the TA. The PPTA consultants will provide policy, advisory and technical support to the XMG on the preparation of complementary investment and policy components to help realize the full potential improvement in the efficiency and sustainability of urban transport under the Project. 9. Assumptions and risks Safeguard issues will be assessed during project preparation and necessary mitigation measures will be included in safeguard documents in accordance with ADB safeguard policies. Initial Poverty and Social Analysis (IPSA) and Rapid Environmental Assessment (REA) were carried out during the TA fact-finding mission. The IPSA concluded that the key social issue to be addressed during project preparation is resettlement and related social issues for the poor, women and other vulnerable groups. The Project is involuntary resettlement category A, requiring a full RP and is environmental category A, requiring a full EIA.

5 10. Implementation Arrangements a. Proposed executing (EA): The Xi'an Municipal Urban and Rural Construction Commission b. Institutional/organizational/procurement and financial management assessments on the EA/IA previously conducted Yes No XMG has been the EA for various ADB and World Bank projects. c. ADB inputs An individual international consultant for peer review (0.5 person-months) and an international consulting firm (14.5 person-months for international consultants and 27 person-months for national consultants) will be hired according to ADB's Guidelines on the Use of Consultants (2007, amended from time to time). ADB will select and hire the consultants, except transport specialist for peer review, through simplified technical proposal procedures according to the quality of their proposal (90%) and the cost (10%) of the services to be provided (quality- and cost-based selection).the 90:10 weighting is considered appropriate because the proposed project requires highly specialized consulting services and the quality of the consulting services will have a high impact on the ensuing loan. The transport specialist for peer review will be recruited through independent consultant selection (biodata). d. Complementary inputs to be provided by Government and/or other TA providing agencies The Government will finance part of the local currency cost, equivalent to $150,000, by providing counterpart staff, office facilities, and other support services. 11. Nature/extent of government/beneficiary involvement in identifying or conceptualizing the assistance: The Mission has been coordinating with officials from the Ministry of Finance, the Shaanxi Provincial Government, and XMG. Further consultations with local Governments, communities and stakeholders are planned during the PPTA implementation stage. 12. Cost Estimates and Proposed Financing Arrangements The total cost of the TA preparation/development is estimated at $750,000 equivalent. It is proposed that the ADB provide $600,000 equivalent on a grant basis from TASF-Others. The Government will finance the remaining $150,000 equivalent, by providing counterpart staff, office facilities, and other support services. Source Amount ($) ADB Financing TASF-Others 600,000 Government Financing 150,000 Total Cost 750,000 Source: ADB estimates. 13. JSF Amount Requested $0.00 a. Elements that justify JSF financing: b. Coordination with local Japanese Embassy or any other embassy when external funding is involved Name of the staff of the local Japanese Embassy / external partner embassy whom you have briefed: 14. Estimated period of TA implementation: a. Approval of TA: December 2009 b. Commencement of TA: April 2010 c. Physical completion of TA: March 2011 d. Closing of TA: October Expected Year of Ensuing Loan/Grant: 2011

6 16. Indicative Amount of Ensuing Loan/Grant: $150,000, Description of Ensuing Loan: The proposed Project represents an opportunity for ADB to consolidate its support for sustainable urban transport in the PRC. This Project will finance investment in road improvement, pedestrian mobility and safety, TDM, ITS and low emissions fuelling infrastructure. The preliminary cost estimate for road improvement and environment monitoring is approximately CNY2.9 billion ($425 million equivalent). In addition to the $150 million loan from ADB, the remaining financing would be sourced from the XMG and a domestic bank. 18. Indicative loan/grant modality: Project Loan

7 Design Summary Impact An efficient, safe, affordable, and sustainable urban transport system developed in the Xi'an City. Appendix 2 PRELIMINARY DESIGN AND MONITORING FRAMEWORK Performance Data Sources/Reporting Assumptions and Risks Targets/Indicators Mechanisms Energy consumption (fuel) by transport per unit of GDP decreased by xx% from 2010 to 2020 CO 2 emission per passenger-km in Xi'an reduced by xx% from 2010 to 2020 Emissions of major pollutants per vehicle km in Xi'an reduced by xx% from 2010 to 2020 XMG statistics and operating data before and after the project Post evaluation surveys and economic analysis. Local government statistics Assumptions Local government maintains emphasis on sustainable urban transport development and effectively coordinates institutions. PRC long-term growth remains robust Project design effectively implemented Outcome Project design and feasibility study upgraded to a level suitable for ADB financing and agreed by the Government and ADB. Capital investment in project area increases by XX% by Memorandum of understanding signed by the Government and ADB during appraisal mission of January 2011 Memorandum of understanding Assumptions Government willing to address necessary changes in priorities Government obtains necessary additional sources of funding Outputs 1. Sector assessment completed 2. Technical assessments completed 3. Technical preparation of value-added components completed 4. Project design requirements completed - Sector assessment report submitted by November EIA/EMP, social and poverty analysis, resettlement plan, and SDAP, submitted by November Draft final report submitted by Feb ADB document registration Government document registration ADB willing to go ahead with the PPTA after the scoping phase. Assumption Effective stakeholder participation and ownership developed Risk Restricted availability and access to information and government personnel Sound technical proposal to establish integrated urban transport Institutional capability of EA to manage integrated urban transport Activities with Milestones 1.1 Commence the PPTA (by April 2010) 1.2 Undertake preliminary social analysis (by July 2010) 1.3 Implement a procurement capacity assessment by ADB staff (by July 2010) 1.4 Review technical aspects (by July 2010) 1.5 Complete environmental impact assessment /EMP (by Aug 2010) 1.6 Prepare resettlement plan (by Sep 2010) 1.7 Prepare social development action plan (by Spe 2010) 1.8 Develop a set of verifiable performance indicators (by Oct 2010) 1.9 Carry out stakeholder consultations (Apr Oct 2010) 1.10 Prepare project components (by Oct 2011) 1.11 Carry out social and poverty analysis (by Oct 2011) 1.12 Carry out financial and economic analysis (by Oct 2011) 1.13 Carry out financial management and procurement assessment (by Oct 2011) 1.14 Prepare project design and monitoring framework (by Oct 2011) Impact indicators will be finalized at PPTA fact-finding. a Inputs ADB $ 600,000 Government $ 150,000

8 OUTLINE TERMS OF REFERENCE FOR CONSULTANTS 1. Urban Transport including Traffic Demand Management (international consultant, 2.5 person-months; national consultant, 5.0 person-months) 1. The consultants will carry out, but will not be limited to, the following tasks: (i) review the city, transport, and road development plans to coordinate the Project with existing plans; (ii) review recent Asian Development Bank (ADB) and World Bank (WB) financed urban transport projects, technical assistance projects, and studies, and based on lessons learned, make recommendations about potential traffic demand management (TDM) components that could be implemented as part of the Project; (iii) identify key issues and suggest strategies to integrate urban transport; (iv) review and update the transport sector profile and provide the basis for further policy dialogue in areas of sustainable urban transport; (v) prepare recommendations to finalize project components, to promote integrated transport systems and sustainable urban policy and development by introducing the latest urban strategies and approaches; these approaches should utilize TDM, intelligent transport systems (ITS) and engineering techniques that will increase the efficiency of urban activities, including transport, and reduce energy consumption and environmental burdens; (vi) review the government feasibility study for TDM and provide a detailed assessment and recommendations; (vii) assess demand for park & ride, ride & bike (i.e. bike sharing) and review the impact on public transport ridership; (viii) support the Xi'an Municipal Government (XMG) to identify locations for park & ride, ride & bike and subway station area improvements; (ix) review and modify the design of facilities for the park & ride, ride & bike and subway station area improvements; (x) review how the park & ride and ride & bike schemes will reduce traffic congestion, promote energy efficiency, and reduce CO 2 emissions by increasing the share of traffic on public transport; (xi) identify and prepare baseline estimates of indicators for the design and monitoring framework; (xii) identify and acquire data for required analyses during project preparation; and (xiii) provide recommendations and support the EA to establish needed institutional arrangements for developing integrated urban transport. 2. Engineering (Urban Road and Road Safety) (international consultant, 2 person-months; national consultant, 2.0 person-months) 2. The consultants will carry out, but will not be limited to, the following tasks: (i) review transport and road plans to coordinate the Project with existing planning efforts, and provide recommendations on project design and implementation; (ii) in cooperation with the pedestrian and bicycle safety specialist, review the suitability of proposed provisions for cyclists and pedestrians; (iii) review drainage design to ensure the adequacy of waterway channels, taking into account load capacity, storm frequency design, anticipated future expansion, and the extent of construction needs; (iv) review underground facilities at road improvement sites and propose measures to protect/improve the underground facilities; (v) identify residual technical challenges and risks, validate the assumptions made, verify the traffic flow data utilized in the feasibility reports; (vi) identify potential improvement and propose alternative designs or technologies; (vii) update the cost estimates, identify procurement packages, and recommend a mode of procurement for those packages; (viii) prepare a project implementation schedule and sequencing of subproject implementation; (ix) prepare a project procurement plan identifying procurement packages, procurement modes, bidding sequence, and timing, based on the procurement capacity assessment; (x) propose a functional implementation mechanism; (xi) develop requirements for construction services and prepare terms of reference for consulting services during implementation of the Project; (xii) survey accessible transport in other countries, including Japan; assess how the proposed Project can bring about urban transport service improvements such as affordable public transit, lower fares for older people, bike lanes, and improved wheel chair access; and establish a policy that promotes accessible transit for disabled and elderly people in Xi'an city; (xiii) mainstream gender considerations in the pedestrian mobility and safety component; (xiv) in cooperation with the pedestrian and bicycles

9 safety specialist, support the EA to identify black spots at pedestrian crossings at major intersections and key mid-block crossing locations citywide; (xv) propose solutions for the identified accident black spots; and (xvi) review design of physical upgrades of black spots. 3. Pedestrian and Bicycle Safety (international, 1 person-month; national, 2 person months) 3. The consultants will carry out, but will not be limited to the following tasks: (i) in consultation with the EA and the Engineering Specialist, develop a prioritization methodology to identify and prioritize key pedestrian crossing locations at intersections and mid-block locations where conditions justify making improvements to enhance pedestrian mobility and safety. The prioritization should include high accident/injury locations, areas with high pedestrian volumes, key tourist locations, the local pedestrian network plan, distances between crossings, proximity to metro stations, and interviews will local residents and merchants; (ii) based on the prioritization methodology, develop a list of over 100 key crossings that will be improved as part of the ADB financed project; (iii) work with the EA and the Engineering Specialist to develop conceptual design strategies to improve pedestrian mobility and safety, which could include adding signals, pavement markings, signs, raised pavement treatments to slow traffic, refuge islands, and bollards; (iv) identify potential areas for a pilot test of bollard installations to control automobile movements in pedestrian areas and prepare a conceptual design and cost estimates to propose as a possible Project component that could serve as a model for future development in Xi an. 4. Intelligent Transport System (international consultant, 2.0 person-months; national consultant, 4.0 person-months) 4. The consultants will carry out, but will not be limited to, the following tasks: (i) review current status of traffic monitoring and management systems (TMMS), traveler information service systems (TISS), traffic survey functions (TSF), intelligent parking systems (IPS) in Xi'an city; (ii) identify the key issues leading to inefficient transport and road asset management; (iii) to address the issues above, survey and analyze the policy framework, regulations, standards, and measures for efficient transport management in developed countries, and identify good practices and effective measures in developed countries that may be adopted in the PRC; (iv) prepare recommendations on an effective TMMS, TISS, TSF and IPS; (v) develop TOR to establish the system architecture and design for TMMS, TISS, TSF and IPS; (vi) support the city and urban planning consultants to establish the system architecture and design for TMMS, TISS, TSF and IPS; (vii) review system architecture and design of TMMS, TISS, TSF and IPS; (viii) review bills of quantities, unit prices, and costs of civil works, equipment, installation, and other related items; (ix) develop a procurement plan and implementation schedule using a prescribed format; and (x) establish requirements for supervision of the installation and testing of the ITS project component, and prepare terms of reference for international consulting services. 5. Environmental Impact Assessment and Emissions and Air Quality (international, 2.5 person-months; national, 3.0 person-months) 5. Environmental Impact Assessment (EIA). The consultants will (i) assist the EA and its environmental assessment consultants to carry out investigations and analyses, as required, and assist the EA to develop the EIA and EMP to ensure it conforms to ADB s Safeguard Policy Statement and Guidelines. Based on a preliminary environmental scoping, the major concerns to be assessed in the EIA include impacts on (a) noise and air quality, (b) socio-economic conditions, (c) rare flora and fauna (d) river crossings and related water quality, (e) road safety and potential spills of hazardous or toxic chemicals, and (f) communities from construction activities and operation; (ii) assess the environmental conditions in the project area through site

10 investigations; (iii) review the draft EIA and EMP to ensure that investigations and analyses are adequate, impacts are quantified and appropriate mitigation measures and management procedures are specified; (iv) assess the direct and indirect environmental impacts of the Project resulting from expressway construction activities and operations; (v) analyze the likely impact of vehicle emissions and suggest appropriate mitigation measures; (vi) review the Government s policy and regulations to reduce motor vehicle emissions, and provide control measures. To include the benefit of proposed environmental enhancement measures that include the construction of drainage and planting of trees along the right-of-way in the EIA, the Consultants will: (i) determine the costs of the proposed environmental measures, (ii) appraise the level of cost against expected environmental benefits, (iii) assist the highway engineers to incorporate appropriate mitigating measures into the project design, (iv) prepare contractor specifications for environmental management and monitoring, (v) carry out a qualitative GHG emissions analysis for the Project, and (vi) prepare TOR and a budget for independent environment monitoring and evaluation. To incorporate the comments from ADB in the EIA and EMP, the Consultants will: (i) assist XMG with public consultation and involvement during the EIA preparation to promote broad-based acceptance of the report and ensure full disclosure; (ii) propose measures for public consultation and involvement during project construction; (iii) provide training to XMG staff on environmental management and monitoring; and (iv) finalize the EIA and EMP for disclosure through ADB's web-site. 8. Emissions and Air Quality. The consultants will carry out, but will not be limited to the following tasks: (i) review the existing CNG market (supply and demand) in Xi an and determine the need for additional fueling stations; (ii) review the existing fueling station locations and assess the appropriate locations for new CNG fueling locations in light of ongoing city expansion and development plans; (iii) determine the potential for expanding CNG to other vehicles beyond the bus and taxi fleets and propose practical policy measures that could expand the use of CNG for transport fuel; (iv) review and assess the capabilities of the existing emissions monitoring, testing, and enforcement system; (v) evaluate the governments proposal to develop a vehicle emissions information system, expand the stationary air-quality monitoring system, and expand the use of mobile vehicle testing equipment; (vi) suggest practical emissions monitoring, analysis and enforcement elements to include in the proposed project; and (vii) determine the expected benefits of the proposed environmental component and suggest performance measures (either qualitative or quantitative) to include in the project design and monitoring framework. 6. Financial Analysis and Management Assessment (international, 0.5 personmonth; national, 1.0 person-month) 9. The consultants will conduct a financial analysis of the Project and an analysis of the financial performance of the relevant revenue-generating entities in accordance with ADB s Financial Management and Analysis of Projects (2005). In particular, the financial analysis will include, but will not be limited to the following tasks: (i) work with the economists to provide financial information and analysis relevant to financing, operating, and maintaining real estate and urban infrastructure; (ii) assess the financial sustainability of the project components; (iii) assess the budgetary implications of the financing requirements of the proposed project to the EA; (iv) document and present the historical financial statements of the relevant entities; (v) identify areas for improvement and training needed with respect to the quality of the financial statements, disclosure, and notes to the financial statements; (vi) review the past 5 years financial performance of the EA and evaluate the relevant entities financial capacity regarding, borrowing capacity, accounts receivable, and subsidies, as appropriate; (vii) prepare income statements, balance sheets, and cash-flow statements for the revenue earning components of the project; (viii) forecast the financial results for 25 years after the launch of project operations, and calculate financial ratios and financial internal rates of return where relevant; (ix) review the detailed cost tables with unit costs, physical quantities, and phasing; (x) review and identify

11 contract packages and the financing plan; (xi) analyze and summarize project costs; (xii) assess financial management and review current accounting and administrative capacities, the internal control system employed, current internal audit, external or government audit; and recommend any changes as appropriate; and (xiii) design a fund-flow mechanism and identify appropriate ADB disbursement procedures, based on the project needs and the capacity of the Executing Agency to manage the flow of funds and disbursements. 7. Traffic Forecasting and Economic Analysis (international, 2.0 person-months; national, 2.0 person-months) 10. The consultants will undertake, but will not be limited to, the following tasks: (i) develop transport traffic forecasts as required to conduct the financial and economic analyses; (ii) review the economic analysis in the domestic feasibility studies and identify any divergence from ADB s Guidelines for the Economic Analysis of Projects and other relevant publications; (iii) review the economic rationale for each project component, and recommend possible changes to the proposed role of government in each project component; (iv) review the economic justification for each project component, based on the economic development and city, transport, and road development plans, or other relevant strategic plans, and determine the extent of further cost benefit analyses required to appraise the economic basis for each project component, including estimating the economic internal rate of return; (v) review the analysis of alternatives for each project component, and ensure that the least-cost option is identified; (vi) assist with the design of the household survey; (vii) apply modern welfare theory to estimate the welfare impact of each project component on the poorest households; (viii) develop economically sound indicators and develop baseline estimates of those indicators; (ix) determine if there are synergies between the urban infrastructure and other municipal services and the economic benefits of urban infrastructure and environmental improvements; (x) evaluate the Project's economic risks; and (xi) support the urban transport specialist to identify and acquire data for required analyses during project preparation. 8. Social Assessment and Resettlement (international, 2 person-months; 2 national, 4.0 person-months each) 11. The consultants will (i) conduct a social analysis in accordance with ADB's Social Analysis Handbook and prepare socioeconomic and poverty profiles for affected areas by the project; (ii) review the government s policy, strategy, and programs for social security, poverty reduction, and urban resettlement; (iii) assess how the proposed Project will be integrated with the government s social and urban development programs, and identify any gaps that need to be addressed; (iv) assess how the proposed Project may help improve people s livelihoods, particularly through the improvement of urban transport services; (v) assist with the social dimensions of resettlement planning, including social and gender impact assessment and formulation of assistance for poor and/or vulnerable affected persons, and recommend measures to enhance project benefits and social inclusion; (vi) establish a consultation and participatory process for the Project that will continue throughout project design, resettlement planning, resettlement implementation and project construction to ensure stakeholders are identified and their needs and demands are considered; (vii) review the resettlement documents prepared by the EA and assist the EA with finalizing the resettlement plan so it complies with ADB s Safeguard Policy Statement (2009); the resettlement plan must (a) quantify the types and degree of impacts on the affected people, including income levels and sources, housing conditions, occupations, expenditure patterns, landholdings, skills base, and assets (production and living); (b) assess the socioeconomic conditions, needs, and priorities of women 2 and vulnerable groups 3 affected by land acquisition and resettlement; (c) formulate rehabilitation measures for the affected persons; and (d) prepare plans to retain or rebuild social and 2 Further guidance is provided in ADB s Gender Checklist for Resettlement. 3 Defined as persons who are landless farmers, poor, disabled, elderly, unemployed workers, and/or illiterate.

12 community networks in the new resettlement sites; (viii) assess the policy and legal framework for resettlement as per Xi'an city government regulations, identify any gaps as compared with ADB s policy and propose measures to address those gaps, define categories for impact and compensation eligibility of affected people, and prepare an entitlements matrix covering compensation and other assistance for all types of impacts to achieve full rehabilitation for lost assets, income and livelihoods; (ix) assess and justify that (a) the compensation standards are based on replacement value, (b) the overall resettlement budget is sufficient to implement the resettlement plan based on the proposed entitlements and rehabilitation plans, (c) relocation sites will be developed in consultation with affected persons, and (d) the local government has adequate plans and budget for the provision of new urban and/or village infrastructure; (x) prepare relocation and economic rehabilitation plans for seriously affected neighborhoods/villages; (xi) ensure that the overall resettlement budget is sufficient to acquire the land and implement the resettlement plan; (xii) review the organizational structure and capacity for resettlement implementation and recommend improvements and actions required before the start of land acquisition; and (xiii) review the ongoing experience of urban resettlement in Xi'an City, and identify (a) lessons learned, and (b) whether the Project has any prior or associated resettlement impacts. If so, due diligence must be conducted and retrofit measures formulated and included in the resettlement plan, as appropriate. The social analysis will be the basis to formulate a social development action plan (SDAP) which will address nonsafeguard social dimensions (i.e., poverty, gender, disabled, elderly, etc.) and will design an appropriate consultation and participation plan for Project implementation. The SDAP will need to be formulated and endorsed by the EA. 9. Peer Reviewing (international, 0.5 person-month) 12. ADB will engage an individual consultant as an external peer reviewer to provide guidance to the Government and ADB on project preparatory technical assistance (TA) activities. The consultants will: (i) review and suggest changes in the TA work plan and consultant TORs to ensure that PPTA activities adhere to ADB policies and international best practices; (ii) review on-going projects and studies financed by other international financing institutes and identify required coordination and cooperation; (iii) monitor interim reports produced by the PPTA consultant team and suggest changes to bring the technical and analytical work up to ADB and international best practice standards; and (iv) will present their findings and suggestions at the inception, interim and final TA workshops. B. Reporting 13. The consultants will submit the following reports: (i) the inception report, within 4 weeks of the start of the TA initiative; (ii) the interim report presenting a preliminary description of the investment project as a whole, including costing, findings and recommendations, to be submitted 24 weeks after the TA initiative starts, together with an interim EIA, social analysis report and draft resettlement plan; (iii) summary and full EIA reports, including EMPs, within 20 weeks of the start of the TA initiative; (iv) a draft final resettlement plan within 25 weeks of the start of the TA initiative; (v) a draft final report 25 weeks after the start of the TA initiative; and (vi) the final report, in which all comments from XMG and ADB will be incorporated, 50 weeks after the start of the TA initiative. All reports are to be written in English and translated into Chinese. Three copies of each report (in English) are to be submitted to ADB and 10 copies (in both Chinese and English) are to be submitted to XMG. Reports should address all aspects of the terms of reference and should include revised project design and monitoring frameworks. The consultants will present key findings in workshops. Members of the project leading group and representatives of the Shaanxi provincial government, the Xi'an municipal government, local communities, and ADB will participate in the workshops and the tripartite meetings, which will be organized after the submission and review of the inception report, interim report, and draft final report. The consultants will assist ADB in preparing a draft report and the recommendation of the President to ADB s Board of Directors.

13 Appendix 3 Table A3.1 COST ESTIMATES AND FINANCING PLAN ($'000) Total Item Cost A. ADB Financing: a 1. Consultants a. Remuneration and Per Diem i. International Consultants (8) Number of Person-months 15 ii. National Consultants (7) Number of Person-months 27 b. International and Local Travel 55.0 c. Translation, Reports and Communications Equipment (Computer, Printer, etc.) b Workshops, Training / Seminars & Conferences c Surveys Miscellaneous Administration and Support Costs Representative for Contract Negotiations d Contingencies 40.0 Subtotal (A) B. Government Financing 1. Office Accommodation and Transport Remuneration and Per Diem 50.0 of Counterpart Staff 3. Contingencies 10.0 Subtotal (B) Total a Financed from ADB TASF-Others b Equipment Type Quantity Cost Hardware (e.g. computer, facsimile machine, copier and printer) and software to be Tbd. Tbd. procured under the consultant contract, in accordance with ADB procurement guidelines (2007, as amended from time to time) and turnover arrangements. c Workshops, Training/Seminars & Conferences Purpose Venue Project investment and sector support preparation: Inception Project investment and sector support preparation: Interim Project investment and sector support preparation: Final Tbd. Tbd. Tbd. d Representative for Contract negotiations: As per PAI 2.02D, the user division, in consultation with COSO will decide on mode of negotiation. Negotiations are usually conducted by correspondence when the assignment budgets are equal to or less than $600,000.

14 Appendix 4 Initial Poverty and Social Assessment Project Number: xxxxxx November 2009 PRC: Xi'an Urban Road Network Improvement Project

15 INITIAL POVERTY AND SOCIAL ANALYSIS Country/Project Title: PRC: Xi'an Integrated Urban Transport Project Lending/Financing Modality: Project Loan Department/ Division: EARD/EATC I. POVERTY ISSUES A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy 1. Based on the country poverty assessment, the country partnership strategy and the sector analysis describe how the project would directly or indirectly contribute to poverty reduction and how it is linked to the poverty reduction strategy of the partner country. The Project includes urban transport infrastructure and service improvements that will support economic growth as well as improved urban living environments. The Project will benefit local businesses and residents, including the poor. This Project is consistent with ADB's support for the Western Development Strategy as well as economic stimulus through urban infrastructure development. B. Targeting Classification 1. Select the targeting classification of the project: General Intervention Individual or Household (TI-H); Geographic (TI-G); Non-Income MDGs (TI-M1, M2, etc.) 2. Explain the basis for the targeting classification: The project will benefit the poor but is not classified as a poverty intervention because the poor and non-poor alike will have access to, and benefit from the various road and transport service developments. C. Poverty Analysis 1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed? 2. What resources are allocated in the PPTA/due diligence? 3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor governance, and pro-poor growth)? The Project can be designed to ensure inclusive benefits for all people using the urban transport network in Xi'an. Equal attention will be given to vehicles, non-motorized vehicles and pedestrians. Lower public transit fares can be provided for the poor and other vulnerable groups such as the disabled and the elderly. II. SOCIAL DEVELOPMENT ISSUES A. Initial Social Analysis Based on existing information: 1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit from the project? The benefits will be widespread amongst the urban districts of Xi'an. The beneficiaries include (i) road users such as private vehicle owners, bus passengers and operators, bicycle owners, pedestrians; and (ii) public and private sector offices such as universities, government offices, commercial business and industries. The poor will also benefit from more safe, convenient and affordable public transit and improvements for non-motorized vehicles and pedestrians. 2. What are the potential needs of beneficiaries in relation to the proposed project? The improved public transport infrastructure and facilities will ameliorate connections with local business centers, access more social amenities and attract more commercial, residential and industrial developments which will increase employment opportunities. 3. What are the potential constraints in accessing the proposed benefits and services, and how will the project address them? The Project will be part of the ongoing urban development, so it will be difficult to isolate the benefits from other infrastructure projects and related urban development. However, this is not serious constraint. B. Consultation and Participation 1. Indicate the potential initial stakeholders. Government, urban transport authorities, urban neighborhoods, villages, commercial businesses and residents.

16 Appendix 3 2. What type of consultation and participation (C&P) is required during the PPTA or project processing (e.g., workshops, community mobilization, involvement of nongovernment organizations and community-based organizations, etc.)? Community meetings will be conducted to discuss the detailed transport infrastructure and service improvements and to formulate the resettlement plan. 3. What level of participation is envisaged for project design? Information sharing Consultation Collaborative decision making Empowerment 4. Will a C&P plan be prepared? Yes No Please explain. A C&P Plan will be prepared either as an integral component of the Project or as part of the social development action plan (SDAP). The Resettlement Plan will also contain a specific C&P Plan. C. Gender and Development 1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project/program? The Project will enhance the urban road network and public transit system, which benefits women and men equally. The mobility of women in Xi'an is already very high and the Project will enhance the quality and frequency of transportation services in a safer manner. The main issue is to ensure women are well represented in consultation process during project design and implementation. This can be addressed in the C&P Plan. 2. Does the proposed project/program have the potential to promote gender equality and/or women s empowerment by improving women s access to and use of opportunities, services, resources, assets, and participation in decision making? Yes No Please explain. There are no serious gender equality or empowerment issues related to urban transport. 3. Could the proposed project have an adverse impact on women and/or girls or to widen gender inequality? Yes No Please explain. The Project will not cause adverse impacts, except for land acquisition and resettlement, which will be addressed in the RP. Livelihood impacts and training requirements will be assessed in included in the RP. III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue Nature of Social Issue Significant/Limited/ No Impact/Not Known Plan or Other Action Required Involuntary Resettlement The scope of resettlement impacts still needs to be determined but a full Resettlement Plan will be required. Significant Full Plan Short Plan Resettlement Framework No Action Uncertain Indigenous Peoples Labor Employment Opportunities Labor Retrenchment Core Labor Standards Affordability Other Risks and/or Vulnerabilities HIV/AIDS There are Hui neighborhoods scattered in Xi'an; this needs to be confirmed. None are expected to be affected by the Project components. A few household may need to be resettled. Core labor standards will be monitored. Employment opportunities for urban construction are limited. The urban transport options should be more convenient and affordable. Subsidies may be provided for the poor, disabled and elderly. There are no other social risks. Limited or No impact No Impact No Impact Plan Other Action Indigenous Peoples Framework No Action Uncertain Plan Other Action No Action Uncertain Action (SDAP) No Action Uncertain Plan